Freight Bill Payment Services:
The freight payment industry was actually formed by a series of banks when the transportation marketplace was heavily regulated. Motor carrier bills had to be paid within 7 days and rail bills needed to be paid within 5 days. To meet this requirement the banking community, shippers, and carriers formed what was known as The National Association of Freight Payment Banks. At that time the emphasis was on settlement of carrier bills within the regulated parameters for credit extension. If freight payment was not made to the carrier as required by law, then the shipper was put on a cash basis for all freight payment moving forward. This was not an idle threat and large Fortune 500 companies would often have their freight held because bills were not paid on time according to the freight payment guidelines established by the I.C.C.
With deregulation of the transportation industry in 1980 this began to change. Credit terms could be negotiated between shippers and carriers for more reasonable periods of time. The process has become much more robust. Jetstream Xpress can offer our customers freight bill auditing as well as freight bill payment. Our process includes a verification of freight rates for compliance with the customer's contracts, checks for previous payment, checks for shipper’s liability and other edits and validations to insure the freight bills meet all the shipper’s requirements for freight payment.
At Jetstream Xpress our freight payment service usually consists of more than one level of combined services. We include information reporting for logistics, and work with a combination of both Electronic Data Interchange, and paper freight bills. Our service also provides audit for both LTL and small package carriers, such as FedEx, and United Parcel Service. Auditing these carriers includes on time performance and claiming of refunds for these services not delivered within the transit times contractually established.
Our model has your carrier partners redirect the submission of freight bills and invoices to us - your freight payment provider. Ideally we will be able to verify the origin and destination in a variety of ways, including bill of lading matching, and obtaining a signed proof of delivery. Vendor/supplier matching is also used for validating the freight bill information a freight payment service receives from the freight carrier. In addition, cost application coding, or general ledger account codes can be added to your remittance for ease of payment through your in-house systems.
Jetstream Xpress will schedule a weekly freight payment process or production run. We will then turn around and pay your company's freight bills to the carriers (electronically) upon approval by an approved management person within your organization.
What to look for in a Freight Payment Service:
Why use a Freight Payment Service?
For more information on how Jetstream Xpress can support freight bill payment and audit for your organization, email us at CustomerService@JetstreamXpress.com or contact our Partnership Department at 1-800-627-1612.